What we’re watching.

Declarative Agents with Actions enable Microsoft 365 Copilot to take real-world actions by invoking APIs, plugins, and enterprise workflows directly within the chat experience. Using custom actions, declarative agents can call external systems, execute operations, and retrieve or update data, moving beyond Q&A to full task completion. These actions are powered through API plugins, MCP tools, and enterprise connectors, allowing seamless integration with line-of-business applications and services. The Copilot platform dynamically reasons over available actions and selects the appropriate tool to

We’re introducing support for Model Context Protocol (MCP)-based agents in Microsoft 365 Copilot . This update enables developers to build Copilot agents using MCP servers and allows users to interact with these agents using familiar experiences. This change supports extensibility and improves agent capabilities for organizations. GA date: June CY2026

Feature description: Model Context Protocol (MCP) based agents in Microsoft 365 Copilot Chat will now be able to surface rich, interactive UI widgets directly within chat. This enhancement enables developers to deliver more engaging and structured agent interactions. Users will experience these widgets when interacting with agents that implement them, and admins will continue to manage these agents through the Microsoft 365 Admin Center. GA date: June CY2026

Integrate proprietary systems, dynamic knowledge sources, and custom actions into your agentic workflows with MCP support, accelerating extensibility while preserving workflow reliability. This integration improves reuse across agents and workflows, reduces duplication of integrations, and embraces an emerging open and extensible agent ecosystem. GA date: June CY2026 Preview date: May CY2026

We're introducing dynamic tool discovery for declarative agents in Microsoft 365 Copilot. Developers can now add, update, or retire tools on their MCP servers without republishing the agent - so end users get the latest agent capabilities immediately, with no deployment cycle in between. Support for federated Copilot connectors will be a fast follow to declarative agents at a later stage. Dynamic tool discovery is backed by Microsoft's enterprise RAI and security protections, and customers retain full control over agent deployment and availability to users and groups. GA date: June CY2026

We are expanding Microsoft Purview DLP for Microsoft 365 Copilot and Copilot Chat to safeguard risks from external emails. This real-time control helps organizations mitigate data risks by preventing Microsoft 365 Copilot and Chat from processing emails from senders external to your organization. This capability currently extends to Microsoft 365 Copilot and agents built in Copilot Studio that are published to Microsoft 365 Copilot. GA date: July CY2026 Preview date: June CY2026

We are expanding Microsoft Purview DLP for Microsoft 365 Copilot to safeguard prompts containing sensitive data. This real-time control helps organizations mitigate data leakage and oversharing risks by preventing Microsoft 365 Copilot and agents from returning a response when prompts contain sensitive data or using that sensitive data for grounding in Microsoft 365 or the web. This capability currently extends to Microsoft 365 Copilot and agents built in Copilot Studio that are published to Microsoft 365 Copilot. GA date: June CY2026

Add resilient, AI-powered UI automation directly into your workflows with computer use tools. Makers can build reusable, goal-oriented automations that adapt dynamically to website or app changes, while admins maintain governance through access controls, hosted browser management, and environment-level permissions. GA date: October CY2026 Preview date: April CY2026

Copilot in PowerPoint lets you create, edit, and refine presentations through natural conversation, directly in your presentation. You can start a new presentation or build on an existing one, asking Copilot to generate slides, update content, improve layouts, and polish design—while preserving formatting, structure, and branding. Copilot uses your files, meetings, emails, and more to help shape content and iterate quickly, and it connects to your brand kit so you can apply branded templates, insert brand approved images, and check for brand compliance. Available to Microsoft 365 Copilot–licen

Allows developers to invoke the Researcher agent through the Work IQ endpoint to perform multi‑step analysis, deep reasoning, and synthesis across enterprise content as part of agentic workflows. GA date: July CY2026 Preview date: June CY2026